Stelmine Canada Completes Private Placement

QUÉBEC CITY, QUÉBEC--(Marketwired - June 19, 2017) - Stelmine Canada ("Stelmine" or the "Company") (TSX VENTURE:STH) announced today the closing of the second and final tranche of a non-brokered private placement. Institutional funds participated in this placement for 76% and insiders participated for 23%.

The private placement (the "Placement") consisted in the issuance of 3 572 168 units (the "Units") at a price of $0.28 per unit, for total placement of $1,000,208. Each Unit is composed of one (1) common share of Stelmine ("Share") and one half (1/2) warrant, each warrant entitling its holder to subscribe to one (1) Share at a price of $0.35 per Share during an 18-month period.

The first tranche of the Placement consisted in the issuance of 2,678,568 Units for a placement of $750,000, and the second tranche of the Placement consisted in the issuance of 893,600 Units for a placement of $250,208.

The Fonds de solidarité FTQ participated in this second tranche of the Placement for a total amount of $150,080 (or 15% of the Placement).

Three (3) insiders of the Company participated in this second tranche of the Placement for proceeds of $90,048 (36% of the second tranche of the Placement). These insiders subscribed to the Units under the same terms as the other investors. The participation of these insiders is exempt from the formal valuation and shareholder approval requirements provided under Regulation 61-101 respecting Protection of Minority Holders in Special Transactions ("Regulation 61-101") in accordance with sections 5.5(a) and 5.7(a) of said Regulation 61-101. The exemption is based on the fact that the market value of such participation or the consideration paid by each such insider does not exceed 25% of the market value of the Company.

All securities issued in connection with this Placement are subject to a hold period of four months and one day. The Placement is subject to the approval of the TSX Venture Exchange.

The proceeds of this Placement will be used for the Company's operating costs and working capital.

About the Fonds de solidarité FTQ

The Fonds de solidarité FTQ is a development capital fund that channels the savings of Quebecers into investments. As at November 30, 2016, the organization had $12.2 billion in net assets, and through its current portfolio of investments has helped create and protect over 187,000 jobs. Fonds is a partner in more than 2,600 companies and has nearly 618,000 shareholder-savers. For more information, visit fondsftq.com.

About Stelmine

Stelmine is a junior mining exploration company and its activities are located in the Province of Québec. Stelmine holds 754 claims spanning 383 km2 on the eastern part of the Opinaca metasedimentary basin, which contains zones with a high potential for gold deposit discovery in geological contexts similar to the one leading to discovery of the Éléonore Mine. Following the closing of the second tranche of the Placement, the Company's share capital consists of 21,926,052 Shares issued and outstanding.